Maximum permissible rate for LST and Stable tokens
Specification
Utilizing the proposed CAPO mechanism WOOF outlines, Gauntlet estimates the Maximum permissible rate using a 7-day moving average approach. Please find the CAPO equation with recommended values below.
r_{\text{upper}} = r + \hat{\sigma}_r
where r is the 7-day (MINIMUM_SNAPSHOT_DELAY) rolling average APY returns in the past year, and \hat{\sigma}_r is the standard deviation of daily returns over the last year. The recommended r_{\text{upper}} values derived from this method are presented in the table below:
| Symbol | r | \hat{\sigma}_r | r_{\text{upper}} |
|---|---|---|---|
| ezETH | 3.92% | 3.15% | 7.07% |
| wstETH | 3.61% | 0.43% | 4.04% |
| weETH | 2.95% | 0.28% | 3.23% |
| rsETH | 3.57% | 1.97% | 5.54% |
| osETH | 2.84% | 0.26% | 3.10% |
| rETH | 2.66% | 0.24% | 2.90% |
| rswETH | 3.27% | 1.63% | 4.90% |
| ETHx | 2.88% | 0.52% | 3.40% |
| sFRAX | 4.51% | 0.44% | 4.95% |
| wUSDM | 4.53% | 0.41% | 4.94% |
| mETH | 3.09% | 0.82% | 3.91% |
Gauntlet recommends setting each token’s Max Permissible Rate to the r_{\text{upper}} values in the table above.
APY Charts
Please find example APY trends for several assets (ezETH, weETH, and rsETH) below:
ezETH
weETH
rsETH
